SEC's Admissions Of Wrongdoing Policy: Boon For Insurers?

Law360, New York (October 9, 2013, 5:06 PM EDT) -- Much has been written regarding the U.S. Securities and Exchange Commission's recent policy of requiring respondents in enforcement proceedings to admit wrongdoing in connection with the settlement of those proceedings. This commentary has been precipitated by the settlement this past August of enforcement proceedings brought by the SEC against Philip Falcone and his firm Harbinger Capital Partners. One particular aspect of this commentary has been whether these admissions will provide liability insurers with coverage defenses which previously eluded them.[1]